Wynyard revenue rises as partner channels increase

Wynyard Group, a security software provider, has released its first half results to 30 June 2015 and provided further details on planned new product releases.

Highlights for the six months to 30 June 2015 include total revenue and other income up 39 percent to $14 million against $10.1 million for the same period last year.

According to the growing Kiwi company, new software licence revenue was up 118 percent compared to 1H14 while recurring software revenue at 54 percent is in line with the FY14 full year number of 53 percent.

Revenue from partner channels increased to 15 percent of Total Revenue and Other Income compared to 1.2 percent for the same period last year with operating costs on plan at $25.5 million, up 54 percent on 1H14.

In addition, Wynyard had $41.1 million cash on hand at the end of June which was in line with the company’s planned cash position at the end of the period.

Richardson says Wynyard made significant investment in product development to strengthen its position in the fastest growing segments of the serious crime market including a new configuration of its Advanced Crime Analytics platform to tackle high consequence cyber threats against high value crime targets in government, financial services and critical national infrastructure.

Wynyard expanded its partner distribution program, and entered into a major strategic distribution partnership with Motorola Solutions, initially focused on the United States law enforcement market - for Richardson, this partnership is already generating revenue.

The company also entered into negotiations with partners for regional and global distribution of Wynyard’s new ACTA solution.

Also, Wynyard successfully raised $42.6 million in growth capital in July, to increase staff, expand operations, invest in product development and support an increase in working capital driven by expanding deal size.

While the placement was well supported, the Board believes the current share price, driven by the thinly traded retail market, is not reflective of the company’s value considering its market opportunity and relative to pre-IPO and listed peers in other tech savvy markets.

FY15 revenue outlook is unchanged at this stage and new solutions will begin to smooth future period revenue volatility and based on the current sales pipeline, Wynyard continues to expect FY15 revenue in the range of $40-45 million.

As Wynyard expands into new regions, delivers new product releases and launches new solutions targeting higher value customers, there is increased revenue recognition and contract execution timing risk.

Wynyard has sought to smooth this volatility in future periods with its highly repeatable Advanced Cyber Threat Analytics solution which is expected to have a shorter sales cycle and to deliver significant recurring software revenue in FY16.

“Wynyard is in one of the hottest technology markets with serious crime fighting software to help solve some of the world’s most challenging security problems,” Richardson adds.

“We are investing in the talent, operations and growing the partner distribution network required to reach and service our customer opportunities and have made good progress on our mission in the first half of this year.”

Wynyard currently anticipates completing its dual listing on the ASX during 4Q15.

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